Indonesia’s halal regulatory framework continues to develop, and businesses operating in the consumer goods sector need to pay attention not only to halal certification requirements but also to the growing obligation to clearly communicate the halal status of their products. As part of the Government’s effort to strengthen consumer protection and transparency, businesses distributing products that are not halal-certified or contain non-halal elements will be required to comply with specific non-halal labelling requirements.
For businesses, this development is more than a labelling issue. It requires companies to review their entire product lifecycle, from sourcing raw materials and managing suppliers to designing packaging and ensuring that information provided to consumers complies with Indonesian regulations. Companies that operate in Indonesia, especially manufacturers, importers, distributors, restaurants, franchise businesses, and international brands, should begin preparing early to avoid operational disruptions when the transition period ends.
The obligation to provide non-halal labelling forms part of Indonesia’s broader halal product assurance framework under Law No. 33 of 2014 concerning Halal Product Assurance, as amended by the Job Creation Law, and its implementing regulations, including Government Regulation No. 42 of 2024 concerning the Implementation of Halal Product Assurance. The regulatory framework is designed to provide greater certainty for consumers while ensuring that businesses clearly communicate whether their products meet halal requirements.
Unlike halal certification, which confirms that a product complies with halal standards, non-halal labelling serves a different purpose. It provides transparency for products that are not halal-certified or contain non-halal materials, allowing consumers to make informed purchasing decisions. For businesses, this means that product compliance is no longer limited to obtaining certification but also includes ensuring that product information, packaging, and consumer communication are properly managed.
The Government has provided a transition period for businesses with products already circulating in Indonesia. Companies are expected to complete adjustments to their product marking and labelling requirements by July 2027. Although this deadline may appear to provide sufficient time, businesses should begin preparation as early as possible. Changes to packaging design, inventory management, supplier documentation, and internal compliance procedures often require significant coordination, particularly for companies with extensive product portfolios.
This requirement may have a significant impact on foreign brands and multinational companies entering the Indonesian market. Products that are already successfully marketed overseas may require adjustments before being introduced or continued in Indonesia. Businesses must carefully review product ingredients, manufacturing processes, supplier arrangements, and packaging materials to determine the appropriate compliance approach under Indonesian regulations.
The impact is also relevant for franchise businesses. Many international franchise brands rely on standardized products, ingredients, and operating procedures across different countries. However, Indonesia’s halal regulatory environment requires franchise operators and franchisors to consider local compliance requirements, including product labelling, ingredient transparency, and supply chain management. Addressing these matters at the early stage of franchise expansion can help prevent regulatory issues and protect brand reputation.
From a business perspective, halal and non-halal labelling compliance should not be viewed merely as a regulatory burden. Proper compliance can strengthen consumer trust, improve market acceptance, and demonstrate a company’s commitment to responsible business practices. In Indonesia, where halal considerations play an important role in consumer decision-making, transparency can become a competitive advantage.
To prepare for the implementation of these requirements, businesses should consider conducting a compliance review of their existing products, identifying products that require labelling adjustments, reviewing supplier documentation, and aligning their packaging strategy with Indonesian requirements. Companies should also ensure that their legal and operational teams understand the implications of these changes across the supply chain.
At Schinder Law Firm, we assist domestic and international clients in navigating Indonesia’s evolving regulatory landscape, including halal compliance, product regulations, franchise matters, foreign investment, corporate structuring, and business licensing. As a trusted law firm in Jakarta, Schinder Law Firm provides practical legal solutions to help businesses understand regulatory obligations and implement effective compliance strategies. Our team regularly advises manufacturers, importers, distributors, franchise operators, and foreign companies on regulatory requirements when entering and expanding in the Indonesian market. We help clients assess legal risks, review business structures, and develop compliance strategies that support long-term business growth.
Whether you are a food and beverage company, consumer goods manufacturer, international brand, or franchise business preparing for Indonesia’s updated halal requirements, Schinder Law Firm is ready to assist you in navigating the regulatory changes and ensuring your business remains compliant. For further information regarding halal compliance, product regulations, franchise expansion, foreign investment, or regulatory matters in Indonesia, please contact us at info@schinderlawfirm.com.
Author:
Dewi Susanti